ARTICLE | Company News

Insmed combines with Transave

December 3, 2010 12:37 AM UTC

Insmed Inc. (NASDAQ:INSM) acquired Transave Inc. (Monmouth Junction, N.J.) in a cash and stock deal valued at about $84.1 million, based on Insmed's Wednesday close of $0.71, before the deal was announced. Insmed shareholders own 53% of the combined company, with Transave shareholders holding the remaining 47%. However, the combined company's management team will be led by Transave President and CEO Timothy Whitten, who retains his titles. Former Transave Chairman Donald Hayden is chairman of the merged company.

Insmed gained Transave's lead compound, Arikace, a sustained-release lipid inhaled targeting (SLIT) formulation of amikacin. The product is slated to begin Phase III testing in 2H11 to treat cystic fibrosis (CF) patients with Pseudomonas aeruginosa lung infections and lung infections due to non-tuberculosis mycobacteria. Insmed's iPlex mecasermin rinfibate is approved to treat children with primary IGF-1 deficiency (IGFD), but the company stopping selling it for the indication under the settlement of a patent dispute with Genentech Inc. and Tercica Inc. Insmed is developing iPlex for other indications, such as retinopathy of prematurity, but the company does not have any other late-stage compounds. Tercica is now a subsidiary of Ipsen Group (Euronext:IPN), and Genentech is now a unit of Roche (SIX:ROG; OTCQX:RHHBY). ...